1. Field of the Invention
The present invention generally relates to stored value accounts. More specifically, the present invention specifically relates to the business-to-business transactions involved in the distribution of electronic gift cards.
2. Description of the Related Art
In modern society, gift cards have become as ubiquitous as government currency. Financial institutions have facilitated the process for retailers, large and small, to offer some form of gift cards to consumers. The widespread use of gift cards has generated new business-to-business transactions that increase the efficiency of distributing gift cards from retailers to consumers. Gift cards are generally included under stored value accounts. In addition to gift cards, other stored value accounts include coupons, reward/loyalty values, stored value programs generated by entities such as GROUPON, and the like.
Traditional business-to-business gift card programs consist of an entity purchasing mass quantities of gift cards from a retailer/brand to receive a discount and then distributing them to end users. Examples can be of an employer purchasing cards for their employees or resellers purchasing cards to sell for a profit. In all scenarios allocating and assigning card account numbers to physical plastic is completed primarily on the gift card processor due to the nature of plastic/magnetic-strip cards.
Typically, as shown in FIG. 9, a pre-payment activation process 500 begins at block 501 with a purchasing stage where a distributor purchases gift cards from a retailer/brand entity (a particular brand of merchandise). Next, at block 502, during the inventory allocation stage, the retailer/brand entity allocates a Bank Identification Number (“BIN”) range of account numbers to the distributor and at block 503 a processor assigns the account numbers to the plastic gift cards. Next, at block 504, during an activation stage, the retailer/brand activates the gift cards and provides the inventory of gift cards to the distributor. Alternatively, the distributor requests that the gift cards be activated on-demand by the retailer/brand entity or the retailer/brand entity's gift card processor. Finally, at block 505, the distributor distributes/sells the gift cards to the end users (i.e., customers).
Under a post-payment activation process, as shown in FIG. 10, the process 600 begins with the inventory allocation stage at block 601, where the retailer/brand entity allocates a BIN range of account numbers to the distributor and at block 602 a processor assigns the account numbers to the plastic gift cards. Next, at block 603 the distributor distributes/sells the gift cards to the end users which then triggers an event 604. Next, at block 605, during an activation stage, the distributor requests that the gift cards be activated on-demand by the retailer/brand entity or the retailer/brand entity's gift card processor. Finally, at block 606 during a purchase stage, the retailer/brand entity invoices the distributor for the activated cards.
Another prior art post-activation payment process 700 is shown in FIG. 11. The process 700 begins with the inventory allocation stage at block 701, where the retailer/brand entity allocates a BIN range of account numbers to the distributor and, at block 702, a processor assigns the account numbers to the plastic gift cards. Next, a triggering event 703 occurs when a customer pays for the gift cards. Next, at block 704, the following three events happen simultaneously; at block 705, an activation stage, the distributor requests that the gift cards be activated on-demand by the retailer/brand entity or the retailer/brand entity's gift card processor; at block 706, the distributor distributes/sells the gift cards to the end users; and at block 707, a purchase stage, the retailer/brand entity invoices the distributor for the activated cards.
Currently, e-gift cards (also known as Virtual or Digital Cards) follow the aforementioned traditional flows. Card account numbers are allocated, and yet, they may never be used if the cards are not distributed or triggered since the numbers cannot be recycled. This creates excess management of card account numbers. For instance, on a mass distribution of card account numbers, all of the account numbers must be allocated (and sometimes assigned to emails), but only a small percentage of the cards may be viewed or redeemed and some cards are never activated.
Stone et al., U.S. Patent Application Number 2010/02380921, discloses a system and method for implementing and managing virtual gift cards.
Chakiris et al., U.S. Pat. No. 7,537,152 discloses a system and method for managing the transfer of value to a third party using short messaging services (SMS) communications.
Graves et al., U.S. Pat. No. 7,083,084 discloses a computerized system and method for managing stored-value card data over a communication network between a plurality of terminals and a central processor.
Yuasa, U.S. Patent Application Number 2002/0198777 discloses a system for issuing, receiving, authenticating and using an e-coupon using a hand-held consumer terminal, such as a cellular phone.
Hurst, U.S. Patent Application Number 2009/0179074 discloses a system and method for distributing mobile gift cards.
Kumar, U.S. Patent Application Number 2010/0041368 discloses methods, systems and computer readable media for electronically delivering a prepaid card to a mobile device.
Nelsen, U.S. Patent Application Number 2010/0076833 discloses a virtual card engine stored on memory that is executable via at least one processor for managing two or more virtual cards.
However, the prior art references have failed to recognize the problems associated with the current stored value account processes let alone provide solutions to the problems of the current stored value account processes, especially for e-gift cards.